Trump’s 50% tariffs on Canadian goods paused at last minute amid possible deal
New tariffs on some Canadian imports that were expected to go into effect Wednesday, and could have had impacts here in Maine, were paused late Tuesday night.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” President Donald Trump posted on Truth Social.
Canadian Prime Minister Mark Carney said in a statement “substantial progress” had been made but that important work remained, confirming Canada had agreed to the three-day delay while negotiations continued, according to the Associated Press.
Details of any deal were not announced.
While not all imports from Maine’s northern neighbor would have been hit with the new 50% tax, some affected goods could impact the state’s forest products industry, and Canada had threatened to retaliate against any new tariffs with levies of its own.
The tariffs threatened to fuel economic uncertainty that experts say could fissure long-established cross-border ties. And the political impact would likely have been bigger than the economic one.
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The new duties, issued by Trump last month under an unused provision of the Great Depression-era Smoot-Hawley Tariff Act, were framed in three tariff proclamations as retaliating for Canada’s unfair trade practices on cars, dairy and alcohol. About $20 billion worth of annual Canadian imports to the U.S. would have been affected.
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Unlike previous tariffs imposed under the second Trump administration, these duties were aimed at specific Canadian goods — not all imports.
The tariffs included several kinds of plywood, finished paper products and chemical wood pulp — a primary component in paper manufacturing, one of Maine’s most prominent cross-border industries. Also included are cars, dairy products, wine, beer, some machinery, hockey equipment, cement, furniture and dozens of other products.
Not included: energy and fisheries — two of Maine’s biggest Canadian import categories.
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Trump and Carney spoke by phone Monday, and trade teams were in last-minute, high-stakes negotiations into Tuesday evening.
Carney told reporters Monday that the talks were “intense and delicate,” and that he was prepared for “any situation that may arise.”
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Patrick Woodcock, the president and CEO of the Maine State Chamber for Commerce, said Tuesday he was optimistic at the news of Carney and Trump engaging directly and hoped a deal could be reached.
Woodcock said the Trump administration has often tried to use tariffs as leverage until the last second, but if they did go into effect Maine would feel the long-term impacts of what would be a historic low in U.S-Canada relations.
“If these proceed, it’s a statement of uncertainty,” he said. “A deal would provide stability.”
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That uncertainty, he said, might impact Maine businesses more than the tariffs themselves, which mostly apply to finished goods.
Tourism and cross-border relationships could take the hardest hit of all, Woodcock said.
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Tagged: Canada, cost of living, forest products, forestry, tariffs, Trump administration
Ethan reports on cost of living for the Portland Press Herald. Before he joined in mid-2026, he covered local news in Augusta and surrounding areas and ran a weekly newsletter for the Kennebec Journal. More by Ethan Horton
